Alliance & Leicester comments on CML Buy-to-Let figures

Mehrdad Yousefi, Head of Intermediary Mortgages at Alliance & Leicester: “Today’s CML figures on the spectacular growth of the buy-to-let market in 2006 reaffirms that it is now an established market.

“It is encouraging that more than half of the buy-to-let lending in 2006 related to the purchase of new investment properties rather than remortgaging, and it would not be surprising if this trend continues. The buy-to-let market looks set to continue to grow.

“There was a 20% increase in buy-to-let in the second half of 2006 compared with the first half which would’ve been helped by attractive pricing and flexible lending policies in the market, along with the return of the portfolio landlords. Indeed quarter 4 last year saw the return of the portfolio landlord and they will continue to thrive, particularly in a single digit house price inflation environment.

“With all this in mind, it is understandable that many lenders including Alliance & Leicester have diversified into this market. This has led to greater competition which is ultimately good news for brokers and consumers.”